Nifty makes solid bullish candle; follow-up buying to boost mood

NEW DELHI: In a relief rally, Nifty50 made a solid bullish candle on Thursday to settle above its immediate resistance level, even as some analysts raised doubts over the sustainability of the rise, and believed that a follow-up buying on Friday will instill much-needed confidence among the bulls. Nifty rebounded, trapping bears below 100-day simple moving average (SMA), as it paired almost losses in last three sessions to close near to 50-DMA at 10,190, said Mustafa Nadeem, CEO, Epic Research. At close, the Nifty50 was at 10,166.70, up 1.22 per cent or 123 points. With Thursday's gains, the index negated lower-high lower-low formation. On the daily charts, this was the first session in eight, when the index made a bullish candle. “Nifty50 registered a robust bull candle, suggesting that the index has kicked in the next leg of upmove. However, it will be too early to conclude that correction has ended at a recent low of 10,033, unless Nifty50 get past 10,410 levels in the next six trading sessions. In that scenario, we can easily conclude with higher degree of confidence level that correction has ended," said Mazhar Mohammad, Chief Strategist – Technical Research; Trading Advisory at Chartviewindia.in. Trade is clearly in favour of the bulls, Mohammad said, adding that one can ride this rally for initial target placed in the zone of 10,330-10,398 levels with a stop loss placed below 10,033 level. "Chart pattern suggests that next immediate hurdle is at 10200 which coincides with 50 day SMA, once Nifty manages to cross 10200 level then we may witness short covering action which could lead Nifty towards 10260-10290 in near term, while 10140-10100 is likely to act as supports on the downside," Rajesh Palviya, Head – Technical & Derivatives Analyst, Axis Securities said.

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NEW DELHI: Nifty50 ended marginally lower on Tuesday and made lower-high and lower-low formation for a fifth consecutive day. But the index recovered from the day's low to form a 'Doji' pattern on the daily chart. Analysts feel that if the momentum remains positive on Wednesday, then a reversal could be in the offing. After the downward slide of last six sessions, the 50-pack index hit a low of 10,072.10 on Tuesday from a high of 10,409.55 hit on November 28.

ETMarkets.com: In a surprise move, Nifty50 rallied over 100 points on Tuesday to reclaim the crucial psychological level of 7,950 and made a 'Bullish Belt Hold' kind of pattern on the daily candlestick charts. A 'Bullish Belt Hold' pattern gets formed usually when the market is on a downtrend or after a series of bearish candlestick patterns. In this formation, the opening price becomes the low point of the day, which is significantly lower than the closing price, thus forming in a long bullish candle.

NEW DELHI: The Nifty50 logged gains for the fourth consecutive session in a row on Wednesday, as the index rose above its crucial resistance level at the 200-day SMA and then 8,200. In the process, the index formed a strong bullish candle or ‘Long White Day’ kind of pattern on the daily candlestick charts. A ‘Long White Day’ or strong bullish candle on the daily charts and crossing of the 200-day SMA is a positive sign for the bulls. The index is on track to hit its next crucial level of 8,300 as long as it stays above its 200-days SMA placed around 8,150 levels, experts said.

NEW DELHI: The Nifty50, which had started on a strong note, gave up most of the gains towards close on Tuesday, as it formed a ‘Shooting Star’ kind of formation on the daily candlestick charts. A ‘Shooting Star’ pattern is formed when the index trades well above its opening level but comes under selling pressure as traders start booking profit at higher levels. This pattern is usually formed in an uptrend and is treated as a reversal pattern. Hence, investors should remain cautious even when the trend remains strong.

NEW DELHI: After a gap-down start, the Nifty50 slipped below its crucial support level of 8,300 on Friday and formed a large bearish candle on the daily candlestick charts. The index also completed a three-candle pattern, which often signals a reversal in an uptrend known as ‘Abandoned Baby’. The candlestick pattern formed on Friday also closely resembles a 'Bearish Belt Hold' pattern. The only difference is that the pattern has a slight upper shadow. In that case, we could call the pattern a large bearish candle.

NEW DELHI: The Nifty50 ended a volatile session below its crucial 200-day SMA placed at 8,217 and formed a ‘Shooting Star’ kind of pattern on the daily candlestick charts on Thursday. After a gap-down start, the index remained volatile throughout the session. Although it reclaimed its crucial psychological level of 8,200, it came under selling pressure at higher levels. Traders should remain cautious on Friday as a break below 8,150 level can extend the decline.

NEW DELHI: The Nifty50 witnessed a strong rally from the word go and managed to close above its crucial support level of 8,000 on Tuesday. In the process, the index formed a bullish Hammer pattern on the daily candlestick charts. There is another interesting observation. Given the fact that Tuesday’s price action remained inside the large bear candle of the previous trading sessions, it also resulted in a bullish Harami kind of formation, which often leads to a trend reversal.

NEW DELHI: The Nifty50, which opened with a small gap on the higher side on Friday, came under selling pressure to close below 8,100, a level last seen in May. It formed a bearish candle, which closely resembled a ‘Spinning Top’ of pattern on the daily candlestick chart. A ‘Spinning Top’ is formed when the real body on the candle is small despite a wide range of price movements throughout the trading session. The Nifty50 opened at 8,097 and rose to an intraday high of 8,128. It corrected 80 points from there to hit an intraday low of 8,048. The index closed 5.85 points lower at 8,074.

NEW DELHI: The Nifty50 slipped below its crucial support level at 8,450 on Friday, but managed to recoup some of the losses towards closing. In the process, the 50-pack index formed a bearish candlestick pattern, which resembled the ‘Bearish Belt Hold’ pattern on the daily candlestick chart. A ‘Bearish Belt Hold’ pattern is formed when the opening price becomes the highest point of the trading day (intraday high), which means there is small or no upper shadow and the index declines through the day, forming a large body and a small lower shadow.

NEW DELHI: A late surge on Thursday helped Nifty50 close above the crucial level at 8,550 and hit an 11-month high, forming a strong 'Bull' candle on the charts in the process. A strong 'Bull' candle after two 'Hanging Man' patterns suggests that the bulls managed to regain control of the market. The trend is likely to extend to a couple of more sessions, but given the fact that most indicators are showing overbought levels, a mild correction cannot be ruled out. A strong 'Bull' candle indicates that the market witnessed sustained buying interest from the bulls for most part of the session.